KUALA LUMPUR (Feb 26): Gas Malaysia Bhd posted a 19.51% increase in its net profit to RM69.23 million for the fourth quarter ended Dec 31, 2020 (4QFY20), from RM57.93 million a year earlier, due to higher gross profit in line with higher volume of natural gas sold and the recognition of revenue cap adjustment in the current quarter.
The group also attributed the improved earnings in 4QFY20 to higher finance income and operating income. Finance income came in at RM5.88 million, five times more than RM1.04 million a year before. Meanwhile, operating income stood at RM967,000, against a loss of RM19,000.
However, the earnings were partly offset by higher overheads and depreciation under cost of sales, higher operating expenses as well as lower contribution from the group’s joint ventures, Gas Malaysia’s bourse filing showed.
Revenue for the quarter also increased 8.38% to RM1.82 billion from RM1.68 billion a year ago.
The group’s earnings were even more impressive on a quarter-on-quarter basis, as its net profit rose 36% from RM50.91 million, while revenue grew by 5.62% from RM1.72 billion.
It has declared a second interim dividend of 5.4 sen per share in respect of the financial year ended Dec 31, 2020 (FY20), payable on March 31. This brings the full-year dividends to 9.65 sen per share compared to the 9.6 sen paid last year.
For FY20, its net profit rose 11.84% to RM212.62 million against RM190.11 million a year ago, while cumulative revenue dipped 2.9% to RM6.69 billion from RM6.89 billion.
It attributed the lower cumulative revenue for FY20 to lower volume of natural gas sold amid a series of movement control orders (MCOs) imposed by the government, coupled with lower average gas selling price mitigated by the recognition of revenue cap adjustment in the current year.
On prospects, the group anticipates FY21 to remain challenging due to the reimplementation of lockdowns in certain areas where some of its customers operate. Nonetheless, it said it will continue to be vigilant and take appropriate and timely measures to sustain the group’s profitability for the financial year 2021.
Gas Malaysia's share price closed down two sen or 0.38% to RM2.63, valuing it at RM3.37 billion.